Always one for a good cliché, ‘Go Big or Go Home’ has always been a favorite. I consider myself medium to high on the risk meter when it comes to how I approach business and my life. I get a thrill and endorphin rush when I try new things or even think about trying new things. It doesn’t mean I blindly launch into skydiving classes or the next get-rich-quick scheme, but I recognize that I’m wired to take above-average risks and I’m willing to live with the consequences. Primarily, I measure the best and worst case scenarios to determine my own risk threshold as it relates to my decision making.
It’s critical to know your risk tolerance before embarking on any sort of venture. If you find yourself evaluating an opportunity by first determining all the reasons why something won’t work, you may be throwing up the first red flag that you are highly risk intolerant and looking for reasons to bail. If all you can see are ways to address obstacles, avoid failure, and an inner drive to overcome the voice in your head saying, ‘stop’, ‘don’t do it’, then you may have the first characteristic of an entrepreneur.
‘Know thyself’, (sorry, another cliché), comes in handy when determining whether you have the personal inner drive to pursue your own business, grow your existing business, or simply maintain the current lifestyle your business affords you. There is no one right answer to the risk question; however, recognizing your threshold is critical in helping you set direction.